Officials from seven of the world's largest economies are helping bolster Japan's troubled economy by taking joint action to cut the value of the yen.
Exports are vital to Japan's economy, and the recent sharp increase in the value of the yen means that Japanese-made products would be more expensive on world markets, which would hurt sales.
So finance ministers from the G-7 nations held an emergency conference by phone early Friday to agree to sell large quantities of the Japanese currency.
Selling yen for dollars, pounds, euros or whatever, means there are more yen on the market, and a greater supply of yen means the price of the yen falls.
The yen immediately dropped sharply in value after news of the joint market intervention. The news encouraged investors, and Japan's benchmark Nikkei stock index rose a sharp 2.7 percent. The rebound helped Japanese companies recover some of the value they have lost as stocks went into free fall after the recent series of disasters.
2011-03-22 11:34 编辑：icetonado